Assurance-dépôt et réglementation bancaire

Abstract

Deposit Insurance and banking regulation The increasing competition with non-banks, the entry of banks into new markets, the single European market and the october 1987 stock market crisis raise important issues concerning the scope and content of banking regulation. Are governments responsible for the stability of financial markets and, if yes, at what level ? How to structure banking regulation and should it cover non-banking institutions ? Does European financial integration raise specific issues and, finally, what are the effects of the stock market crisis on the banking sector ? Does it reinforce the need for public intervention ? These are the questions examined by the author who starts by developing an analysis of the market imperfections calling for public support. The major conclusions of the paper are that the deposit insurance systems recently developed by several countries are unlikely to promote stability which is mainly assured by the lender of last resort function of central banks. This function is justified, provided that appropriate private or public mechanisms are put in place to control risk taken by financial institutions.